Market relief after Moody’s says it might grant a stay of execution
JOHANNESBURG – The market breathed a sigh of relief yesterday after Moody’s indicated that it may grant the country a stay of execution when it announces its expected ratings review in March.
Moody’s said that there was nothing to flag at the moment on South Africa’s economic performance, thwarting fears that it may downgrade the country’s sovereign debt to junk.
It said it would await Finance Minister Tito Mboweni’s Budget speech next month to see if there would be any reforms.
The downgrade threat had rattled the markets since the ratings agency reviewed the country’s outlook from stable to negative last year.
The possible reprieve bolstered the markets slightly as the rand held steady at 0.14percent to R14.60 against the dollar by 5pm, following days of pressure amid emerging market volatility and global risk-off sentiment over deadly Chinese coronavirus.
Source: iol.co.za
